As a mechanic, it doesn’t matter if you are working from a large auto repair shop or your garage at home, it is important to have the right type and level of insurance cover in place.
When a customer leaves their vehicle at a servicing or repair garage that they trust, they feel that it is in the best hands. Meaning car mechanics are not only entrusted to fix their customers’ cars, but they are also entrusted to keep their cars safe and well looked after. This puts mechanics in quite a unique position of responsibility requiring specialised insurance to protect their business.
Employer’s Liability Insurance
Employers’ Liability Insurance is a legal requirement if you employ staff, including other mechanics, apprentices and admin staff. Even if you employ staff from your home, rather than a garage, you are legally required to take out employer’s liability insurance.
If a mechanic that works for your business burns their hand whilst welding then employers’ liability insurance would cover both the legal and medical costs as well as any financial compensation awarded as a result of the accident.
You must get Employers’ Liability Insurance as soon as you become an employer and your policy must cover you for at least £5 million and come from an authorised insurer. If you fail to do so, you can be fined £2,500 every day that you are not properly insured.
Public Liability Insurance
Public liability insurance for mechanics is not compulsory by law but is an important part of your business’ financial security. This insurance policy will protect you from unforeseen and costly incidents, involving a member of the public, that motor mechanics could be held liable for and which could end up putting your business into financial difficulty. The policy covers any claims that are made against you and also meets the costs incurred for any legal defence of the claim, whether you are responsible or not.
As a mechanic, you likely have hundreds, if not thousands, of pounds invested in tools. If you use hand tools or portable power-driven hand-held tools for your work as a mechanic then you may want to consider getting tools cover. Tools cover will cover you in the event that your tools are lost, stolen or damaged.
This type of cover is an extension to your public liability insurance policy that protects you against the loss or damage of these tools that are being used in connection with your business. These tools could be owned by you, your employees, the business or even hired in on a temporary lease agreement.
Always Read the Fine Print!
Some insurance policies might not cover your mechanics business if you work at specific heights or with heat. So be sure to always read the fine print within the policy documents so that you understand all of the exclusions thoroughly.
Call freephone 0800 1696137 and get a quote from Ashburnham Insurance for your mechanics insurance. Then if something unfortunate does happen you’ve got the peace of mind knowing that you’re financially protected. It doesn’t matter if you service, repair or maintain vehicles, we have a mechanics insurance policy to suit your business.